Which element must be present for a disclaimer of the implied warranty of merchantability to be valid?

Which element must be present for a disclaimer of the implied warranty of merchantability to be valid?

• A. The word 'merchantability' must appear
• B. Must be conspicuous
• C. No disclaimer allowed
• D. Disclaimers can disclaim an Express Warranty

Answer: (A)

The essential point here is that a disclaimer must explicitly target the warranty it’s trying to exclude. For the implied warranty of merchantability, that means the disclaimer must include the term “merchantability.” Seeing that word signals clearly that the seller is attempting to bar this specific implied warranty. Without mentioning merchantability, the disclaimer won’t operate to exclude it. While in practice the disclaimer also needs to be conspicuous and in writing to be enforceable, the element this item tests is the explicit inclusion of the word “merchantability” in the disclaimer.

The essential point here is that a disclaimer must explicitly target the warranty it’s trying to exclude. For the implied warranty of merchantability, that means the disclaimer must include the term “merchantability.” Seeing that word signals clearly that the seller is attempting to bar this specific implied warranty. Without mentioning merchantability, the disclaimer won’t operate to exclude it. While in practice the disclaimer also needs to be conspicuous and in writing to be enforceable, the element this item tests is the explicit inclusion of the word “merchantability” in the disclaimer.